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Goldman Admits It, Too, Was Short The Swiss Franc
Turns out it wasn't just Goldman's muppet clients who were slaughtered by one of Goldman's "Top Trades" for 2015, when the reco to short the CHKSEK plunged 16.5% and the trade was stopped out. It was Goldman itself. From the Goldman Sachs Asset Management disclosure on the impact of the SNB floor removal:
What changed? In recent months, SNB reserves have started to pick up (an increase of CHF400bn from Jan 10 to today), while the European Central Bank (ECB) is closer to introducing a sovereign Quantitative Easing (QE) program. Maintaining the exchange rate floor in a Eurozone QE scenario would likely have required substantial interventions by the SNB.
So in case there still was confusion, Goldman has blessed its former employee to turn on the printing presses in Europe. That much is clear.
However, this is more important:
In our portfolios with currencies, we have been short the CHF on the grounds that it was an expensive currency which we expected would experience capital outflows as European growth normalized. We were surprised by the sudden removal of the peg. Although the CHF real effective exchange rate is lower than during the European crisis of 2011, it has actually appreciated in recent months. We exited a substantial portion of our CHF short today and are monitoring the situation closely.
And yet, this makes little sense considering Goldman, in its earnings call explaining why it just had the worst FICC quarter since Lehman, also said this:
- GOLDMAN CFO SAYS MOVE IN SWISS FRANC WAS `IMMATERIAL' TO FIRM
So who is lying? Goldman or Goldman.
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some folks were short, oops!
Je Suis Rich
Fuck Goldman
Goldman, LOL. They'll get back anything they lost and more by fucking someone else.
WHAT Aren't The Sacks Folks Not Short On ?????
Hehehehe Je Suis GoldMan...$$$$$
Immaterial to the firm, thank you suckers errr... taxpayers.
... 'Why are government employees filing a civil suit against Goldman Sachs? That's just going to be embarrassing in a few years when they all go back to work at Goldman Sachs.’ ~ Stephen Colbert
Fuckin' shylocks lie 24/7/365.
"and are monitoring the situation closely."
I feel better already.
Muppet blood.
"GOLDMAN CFO SAYS MOVE IN SWISS FRANC WAS `IMMATERIAL' TO FIRM"
Of course it was immaterial to the firm. It wasnt their money.
BOHICA should be fairly applied....one way or another....
DEATH TO THE MONEYCHANGERS.
and yes - FUCK MOTHER FUCKING GOLDMAN.
Goldman is part of the Cartel, so obviously they will lie and say they got hurt by the move, when in reality it was done the way it was because it was an intentional takedown of smaller competitors. The brokerages that went bust will now have all their business absorbed by Goldman, JPM, and the other cartel members. This is one of the TRUE MANDATES of Central Banks, not the fantasyland mandates of max employment and price stability, which are just a smokescreen.
And thus the true reason behind the 2nd Iraq war, but I digress.
So true, but beware when there are no more little ones left for the big boys to take over. When the big boys start feeding on each other, you will know the sociopathic game is in its death throws. Of course the sheeple will be long since fleeced of everything by then... or worse.
Nothing is "Material" when you have a conduit to the printing presses.
Tyler the Vampire Squid is hilarious. Well done!
http://en.m.wikipedia.org/wiki/Vampire_squid
poor fucking squid
It is very, very hard to believe that JP Morgan, Goldman Sacks, the Fed etc were not aware of what the Swiss were going to do.
However, looking for a break in the loyalty chain is a good thought exercise, as some club members might just now be discovering that they've been set-up as the next fall guy.
Damn those ambiguous terms and conditions!
goldman might have been short, but I'll bet Lloyd got the inside word and adjusted his portfolio accordingly.
it is...... GOLDMAN ADMITS, IT TOO, WAS SHOR....... Now do you get it??
Bail out in 3....2....1.....
As I've said over and over and over:
Bank lobby is receiving hit after hit after hit after hit.
Neocons are back, bank lobby is being shown the door.
Neocons have plenty of revenge to take on bank lobby for being decimated by bank lobby's man, obama.
At this point, I damned near hope you're right about that. "At least the trains ran on time."
I think that is silly. There are no neocons in power. The ones in power are still progressives of both parties.
The bank lobby heavily donates and owns both sides.
What worries me is having someone like Elizabeth Warren taking political advantage of the situation. She and 99% of the other politicians can't be trusted. But she will ride the populist wave.
Yes, banks need to be downsized as well as their political influence. But quite, in a modern society, there will always be some form of bank or money lenders (changers).
Its a fascinating idea, ekm1. I will watch for your further thoughts and evidence for this
lol...
you imply neocons aren't banksters? seriously.. I know your smarter than that...
neocons are zionazis. banksters are zionazis.
any questions?
Pretty sad wasn't it, he had to repeat it several times to make sure everyone got the silly hook.
I've seen an EKM before but not and EKM1 though (28 weeks in zh).
So that's his repeated message ... stay on message.
Makes me wonder what is going on with Petraeus.
Best news I have heard all day...
The Goldman BalSack takes a gentle muppeting. Altho it remains unclear whether the Sack was net long Swissie exposure.
Agree.
And..
"We exited a substantial portion of our CHF short today and are monitoring the situation closely."
How about exiting all of it? (Unless yes, you're net long).
If not, there's always corporate welfare to bail your sorry asses out.
They're professionals- if the hedge on the original position is paying off right now, they lighten the original trade and use the balance to hedge the hedge, which is now the primary trade.
I'm stunned by the statement that they thought EU growth would "normalize"? What fucktard came up with that idea and what data was he reading when it happened?
+1 Nice catch Chubbar
... and what was he smoking?
Normalize, what does that word mean? Converge @ 0.5%, drop to -4% for 10 years, or skyrocket in flight, afternoon delight?
Who is lying?
Goldman naturally!
You mean there are certain things outside the control of the Great Squid?
<<insert Harry Mudd lying quote here>>
It pleases me to think of these folks gingerly walking around with a Toblerone rammed up their ass.
The SNB should threaten to print if they're worried about the CHF strength after the ECB-qe. Everyone is long the CHF now so it would be a massive move back lower as all the stops get taken in the other direction.
Jordan could get some good jawboning in before he actually had to act because the markets are afraid of him now. It's easier for SNB to sell their currency then having to proxy buy it via the euro.
"Jordan could get some good jawboning in before he actually had to act because the markets are afraid of him now."
I think that's a great point.
... "Well, just four days after Goldman Sachs cost investors $12 billion by failing to tell them that they're being investigated for fraud, they gave out another $5.4 billion in bonuses. Huh? Even Somali pirates are going, 'Come on!'" ~ Jay Leno
The *muppets* will pick up the losses.
Would have thought they were on both sides of the trade. Pretty sure the whole circus basically boils down to Goldman buying and selling shit to itself.
"So who is lying? Goldman or Goldman. "
this time it is Sachs
Never could trust that guy Sachs. Shifty eyes. Small hands.
Washington's/Tel Aviv's ISIS does Geneva?....
Amateurs. Should have bought the DAX instead and short SMI
Ok so "everyone" is getting hammered - bullshit - who 1) is making money - and who 2) really cleaned up by knowing about this in advance.....
That would be the SNB.
The ultimate insider trade.
So how about "Fuc To Market" ? I guess we'll hear crowing again in this weekend's propaganda pieces...if his Merchant Bank is still solvent.....
CHF was an expensive currency? Really? What a clown show.
Disgraceful, employees of the Squid losing money for the Squid.
Open the windows and JUMP YOU FUCKERS!
Knew I shouldn't have got involved with fx trading - but at least my core investments are safe with Long Term Capital... phew!
Good move son, you can't lose that one - I heard it's run by nobel prize winners.
We all know that a badge is a sign of SECURITY - don't we? I mean that's what these badges are for - aren't they????
ROFL
re Good move son, you can't lose that one ..
Thanks for your "vote of confidence" ;)
Yes, if I've learned one lesson it's: Do your Due Diligence & then Leave it to the "Experts"
The immaterial has become... immaterial. [/Lord Cutler Beckett]
Why not play the FX casino? Goldman is TBTF, which means they win no matter how they bet... because you and I will be forced at gunpoint to bail them out if they loose, again and again.
Time to address TBTF!!
http://incapp.org/blog/?p=1861
I will see you all at Dollar, Euro and Franc parity.
Who's jumping first GS? ZHers want to know!!!
No problem they still have the state sanctioned OPEX fix to set it all straight. I mean if it was all fixed it would be...uh..fixed right?
"during the European crisis of 2011"
It never ended you fucking morons, it got worse! Semantics isn't gonna help you this time. As an ordinary muppet I have no clue about exactly whats going on here, but what I do hope is that the SNB shoved a big fuckin dick right up Draghis and GS ass.
I am probably dead wrong but I have to belive it to maintain sanity while these mentaly challanged meat heads keep flapping their mouths.
So happy I ended my FX account a couple of years ago.
Fuck you Draghi, Fuck you Goldman!